Unfortunately, there isn’t a miraculous strategy to achieving Financial Independence (unless you win the lottery or inherit lots of moolah).
The equation is the same for all, young or old and anyone in between.
Decrease your expenses, increase your income and invest the difference between your income and expenses. Add time … and voila, you will arrive at the destination of financial independence.
I recently wrote that the most important money habit is to spend less than you earn. And that combining this habit with increasing your income is undeniably the best strategy to achieve FI.
In my own journey, I have focused on decreasing my expenses because it is something I can do immediately. And because at heart, I am a spender. So I wanted to build good spending habits first and get my spending under control.
I am now ready to look at the other part of the equation – it is time I focus on increasing my income.
And … that is when I hit the BRICK WALL of limiting beliefs so fast that I am bruised all over and covered in bandages.
Disclosure: Please note that I may benefit from purchases made through my affiliate links below, at no cost to you
You are a Badass at Making Money
I started reading Jen Sincero’s You are a Badass at Making Money. – Master the Mindset of Wealth.
Her premise is this – if you are ready to make more money, you can.
Seriously, this is her FIRST sentence, in the introduction.
And this is me, incredulously – yeah, right!
Can you see how much work is ahead of me?
In a nutshell, I don’t believe I can make more money.
I am at that stage of my life where working hard over the years led to burnout. And I eventually transitioned to a role with less responsibilities and overtime and therefore less pay.
So, now I want to earn more money?
My head is screaming – are you nuts? Remember burnout? Do you want to go there again? It’s taken you a while to recover and chill, to love having time to yourself again. You want to give that up?
This is why it took me over two months to read the book. You should have heard the conversations I had with myself … it wasn’t easy confronting my many limiting beliefs about making money.
My limiting beliefs hold me back
I live a privileged life – money has never been an issue, not in my childhood and not as an adult. Even when I did not have a full time job when I graduated from university, I managed to survive with part time and casual jobs. I have always had enough food, clothes and a roof over my head. My parents had enough money to educate me.
And yet, I have so many limiting beliefs about making money and having money in general. I understand that a lot of these money beliefs are from my childhood – observing how my parents handled money and what their beliefs were about money.
Reading this book helps me confront the truths of these beliefs and rewrite them.
Here we go …
Limiting Belief #1 - Money is the root of all evil
I subconsciously believe that if I have a lot of money, I would be an evil person; that having a lot of money may make me do evil things … so it’s best not to have too much.
The truth is that money is a tool. A tool that can be used for good or evil. It is up to us, human beings to choose how we use it. Money, in itself is not evil.
My new truth – I have control – I choose to use money for good, to be generous with it, to help those in need. The more money I have, the more time I can spend volunteering and helping others without worrying about how to support myself.
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Limiting Belief #2 - Money can't buy happiness
This is true.
There are happy people who don’t have money and unhappy people who have a lot of money. The converse is also true.
What makes me happy can cost a lot or nothing.
Veggie gardening makes me happy – seeing my seedlings grow and produce food is so therapeutic. It is my dream to be able to raise seedlings from seeds I save but I am not there yet. So I spend money to buy seedlings and seeds. My worms and composting system are not working to full capacity yet so I have to buy good quality potting mix every now and then.
Another activity that brings me joy is travelling to new destinations, experiencing other cultures, eating other cuisines, meeting local folk. I can do it inexpensively by visiting countries with a lower cost of living than Australia. But it is also my dream to visit Antarctica one day – I even list it as a goal for the decade. Visiting Antarctica is expensive!
I love spoiling my family or friends. It would be nice to do so without worrying about how much experiences or gifts cost. Spending time with them also involve having enough money to slow travel to see some of them overseas.
So the truth is that money supports my happiness. Yes, I can be happy and adjust my wants and expectations accordingly if I didn’t have money. But having more money will not make me unhappy automatically – it is how I earn the money and what I do with the money that matters.
Limiting Belief #3 - I am greedy to want more money
Am I greedy to want more money?
How much is enough?
Am I not grateful to have what I have already?
The truth is I am striving to reach financial independence so I don’t have to depend on anyone, including the government to support me in my old age. Being single, I am my own back up plan; I have no one else to rely on. And it would be a bonus if I can leave my niece something when I pass on.
I don’t want more money for money’s sake.
My FI ‘number’ covers my every day expenses plus the ability to travel overseas. Making more money would enable me to reach FI by 55 – it is a self imposed deadline and I am 100% ok with working part time if I can’t meet this deadline.
I am immensely grateful to be in the position I am in – I am incredibly lucky to be able to pursue financial independence in the first place.
Limiting Belief #4 - Wanting to make more money is not a worthy pursuit
I struggle with this. It is closely related to limiting belief #3.
I feel guilty whenever I think about making more money. Am I shallow and unworthy to think about making more money? I should be thinking about how to solve world peace and feed the hungry instead; or something noble like that.
My new truth – I give myself permission to make more money. Once again, I don’t want more money to hoard it. I will use it wisely – first of all, to ensure I don’t need anyone to bail me out financially and secondly, to enable me to donate my time and more money to charities or causes dear to me.
Limiting Belief #5 - Rich people are snobbish and selfish, therefore I don't want to be rich
Um … I seem to have a lot of hang ups about being rich.
I am generally unimpressed by the outwardly rich people, in particular entitled and spoiled celebrities. But there are lots of people who are rich (think Millionaires next door types) but you wouldn’t know it. They are the kind of rich people I aspire to be.
My new truth – I don’t have to be a spoilt brat rich person. I don’t have to change the fundamental me, just because one day, I will have a net worth of a million dollars. I give myself permission to be rich. (As a sign of much work to be done yet … I’m shuddering as I type the last sentence)
Limiting Belief #6 - Money doesn't grow on trees
In other words, money is hard to come by. So don’t squander it, don’t gamble it away. Keep it safe. You don’t know if you will get more and when you will get more.
This was drummed into me from a young age.
That is why I feel guilty when I spend money. And why perversely, I get such a thrill at the same time when I do spend it. It’s me rebelling against parental teaching.
My new truth – I believe I can make more money. I believe I am able to invest it according to my risk appetite and that my money invested in index funds is safe.
Limiting Belief #7 - I will burn out again
This is a big fear for me.
Having experienced burn out before, I never want to experience it again. Ever.
My fear is that if I start pursuing an increase in income, I will spend more time and energy working on side hustles, leading to less time for relaxation and once again, living a stressful life.
My new truth – I am in control of my life. I get to decide how much time I want to spend increasing my income. And how much time I have to wind down and relax. I can set in non negotiable rest times and guard against burn out. It doesn’t mean that I will automatically be burned out if I explore ways to increase my income.
Limiting Belief #8 - If I don't work hard for my money, I don't deserve it
I was brought up to work hard, that success (and therefore money) would follow.
Therefore learning about passive income was mind blowing.
You mean I can earn money from not actively working?
I understood about being paid a dividend from owning shares in a company. But investing upfront with time and work on a digital product and then be paid every time someone buys it? Amazing!
My new truth – it is ok to embrace passive income and work hard at establishing passive income streams.
Limiting Belief #9 - I am not smart enough to make a 6 figure income
I have never earned a 6 figure salary. In all my years of working, I can only recall negotiating for a pay rise once, in my early years.My pay has obviously increased over the years, just not by leaps and bounds.
Earning a 6 figure income has always seemed unattainable. But more than that, I don’t believe I am capable of earning a 6 figure income.
My new truth – I can figure out how to earn a 6 figure income if I develop some passive income streams.
Limiting Belief #10 - Being an entrepreneur is too risky
Both my parents worked for a corporate giant. They expounded the great value of having a stable job and secure income. Having one’s own business was too risky.
I somehow absorbed this thinking too.
Since discovering FIRE blogs & podcasts, I have started to view entrepreneurship as a valid way to earn a living and that a 9-5 job can be risky too.
My new truth – I can be my own boss, establishing those passive income streams, starting with this blog, to supplement my 9-5 job. Baby steps!
Busting those limiting beliefs
Obviously, letting go of our limiting beliefs doesn’t happen overnight. They have been our truths for a long time. Changing them to our new truths or new mindset will take time.
I love Sincero’s explanation of how mindset works.
Your beliefs take you where you are going – they drive the bus.
But your thoughts are like the tour guide – they work in conjunction with the bus driver and have the right of veto ie they can change your direction.
Your words are the assistant – they help your thoughts and beliefs to be real, to have a voice.
Your emotions keep you excited and motivated – it is the fuel to keep you going.
And lastly, your actions build the road for your beliefs to travel on but can easily be diverted by thoughts and emotions.
And when all these aspects of mindset work together, you can make things happen.
Are you ready for some woo woo - ness?
According to Sincero, there is a force larger than ourselves at work – she calls it Universal Intelligence or some people call it God or Spirit or the Universe.
Our thoughts influence the energy that is reflected back to us. So if we keep thinking that we can never afford that expensive holiday then Universal Intelligence notes that and we will be stuck at home. But if we imagine it and dream about it and are open to making it happen, then Universal Intelligence will take note and arrange the energy to make it manifest in physical form.
I will be honest – this was where I got stuck – it was a bit woowoo for me. But after the next few chapters, I understand what she means.
Our thoughts are powerful. Our beliefs can hinder us or motivate us to achieve whatever we want to achieve. If we desperately want something, we’ll make it happen. If you tell yourself constantly that you are no good with money, then you will not want to learn how to manage it, how to earn more of it.
So if you want to make more money, you need to be open to making more money. You need to put it out there, to the Universe that you are open to any opportunities it sends your way.
It is our mindset that we need to change. It is the stories we tell ourselves that dictate the paths we follow.
And ... umm ... it works!
I will admit that I am utterly shocked that it kinda works.
As I mentioned earlier, visiting Antarctica is one of three goals I want to achieve within this decade. And amazingly, a few weeks ago, Frogdancer Jones wrote a post about wanting to visit Antartica too. So I sent her a DM on Twitter and asked if I could join her. She graciously said yes and that we will be looking at 2022 or 2023 as a realistic timeline due to Covid travel restrictions. And that it will give us time to save for the trip.
So now all of a sudden, there is a target year. And the need to save up just became more real. I have a travel fund that is adding up quite nicely as I haven’t travelled this year. But I also wish to visit family overseas so this travel fund is more or less spoken for.
Therefore I need new income to funnel into my Antarctica fund.
And this is where I practised the woowoo-ness I learned from reading You are a Badass at Making Money. You have no idea how uncomfortable I feel, closing my eyes and saying out loud – I am open to making more money. I want to earn more money.
I am not joking – a day after I did this – out of the blue, two, not one but two people reached out and asked me about an affiliate. Eventually by the end of the week, I had two people use my affiliate link. NO ONE HAD EVER USED MY AFFILIATE LINKS BEFORE. EVER. I am so grateful (you know who you are!) that I am on my way to Antartica!
I also signed up to Octopus Group, an online survey provider in Australia, and has earned nearly $10, answering a few surveys (while watching TV and at my lunch breaks).
I’m not saying I’m raking it in but at least I am making the most of opportunities that come my way. I will continue to manifest opportunities to come my way.
Of course, it could all have been a big coincidence but then again, who am I to go against Universal Intelligence/God/Universe?
Final Thoughts
Reading You are a Badass at Making Money has helped me to debunk my limiting beliefs about money and rewrite new truths.
I am learning how to change my mindset – to be aware of my thoughts and the words I use to frame new beliefs which then generate excitement and desire to fuel my actions.
Despite the woowoo-ness of manifesting my desire to make money, I will continue onwards to see if it leads me all the way to Antarctica and eventually, financial independence 🙂
It is a work in progress.
I am a work in progress.
Haha! You certainly had a lot of money hang-ups. I just kept on scrolling and the list kept growing… 6, 7 8…
I think that being so broke when the kids were young meant that I’ve never thought having lots of money was a bad thing. It gives you security, which is something I deeply value.
We’d better start saving up for some thermal underduds!
I absolutely value the sense of security that having money gives me. But it’s just hard for me to shake the “I’m greedy for wanting to make more money” mentality.
Definitely need money to buy our thermal underthings, haha!
Very intriguing. Thanks for sharing about this book. I think I need to read it. In my first year of striving for FI I was super gung-ho about increasing my income, including interviewing for a new job even though I had some of the same concerns over stress and burn out that you have. I got a second interview but in the end was not the top pick. Sitting here in the shit year of 2020 and all the anxiety and stress it has brought I’m SO glad I did not get that job that I would be juggling right now. I would have enjoyed an increase in income but along with it a much more stressful workload. I still want to increase my income but I want to focus on passive ways to do it in addition to my 9-5 that I have now that I like very much and am grateful for. I’m adding this book to my list. Sadly though being in the US I don’t think I can use your affiliate link. I hope lots of great woowoo money opportunities continue to come your way!
Hi Amelia,
I really loved this book – it challenged me to think about making money in a totally different way 🙂 Hope it helps you too (& no worries re affiliate link, haha)
May 2021 brings us all a new reality and an increase in passive income!
OK
The University has just answered MY big question – what book to read over the Christmas break.
Thanks for sharing.
Great Post!!
S
Hope you enjoy it, Shaun and that it doesn’t take you as long to read it ie you don’t have as many hangups about money as I do 🙂
Interesting to see so many money hang ups. I can relate to the fear of not knowing if you will burn out again. Sometimes you’ve just got to start and try to have fun along the way right?
PS – super exciting to hear about your Antartica trip!! Do you have any ideas of what you want to do once you’re down there?
Hi Jordan, I think the longer you leave dealing with money issues and the older you get, you end up with more money hang ups. Hats off to all the young ones like yourself, already doing a great job managing your money.
Still researching on Antarctica – want to see all the penguins, in particular and being in a pristine environment – not sure about the cold though
You’re going to Antarctica!? That is amazing! That is awesome that you finally found a good way to make that first step!
Now this: Limiting Belief #8 – If I don’t work hard for my money, I don’t deserve it.
I get so hung up on that one. I have found that sometimes, even though I take on seemingly harder jobs with a higher income – I’m not necessarily working any harder. There is so much to unpack there with the whole – do we really need to work 8-12 days to accomplish everything our jobs want us to do, etc – but aside from all that – I sometimes don’t feel like I am working *enough* for the pay I receive. I have to continually tell myself that I worked hard to get where I am and that I deserve my income.
Thank you for sharing! I hope you can tackle any goals you have to increase your income this coming year!
Hi Liz, you do work hard to deserve your income, nursing in a pandemic!
For me, working from home and online is such a novel concept. It just doesn’t seem like I’m working hard enough – kind of too good to be true. I know now that there are many online entrepreneurs who earn a great income doing just that. But I always associate working hard with working physically hard onsite. Lots of limiting beliefs to crush!